A new report from IBISWorld has been released that discusses a recent trend in which companies are performing better as the recovery hastens, and are spending more money on contract workers staffing services.
The report also found that throughout the recovery, the bulk of contract positions were for jobs in the administrative and industrial sectors. However, this has been changing in recent months, and several jobs in the contract staffing sector can now be found in the professional and businesses services industries. This change in the direction of staffing prompted IBISWorld to release an update to a previous report.
The report noted that the recession left a major imprint on the contingent workforce. Although the pool of potential contract workers rose in correlation with the unemployment rate, lower corporate profits deterred many from bringing on such workers, and led to a drop in staffing industry revenue.
"Luckily for industry operators, the labor market has slowly improved, with revenue rising each year since 2010," said IBISWorld industry analyst Kevin Culbert.
Still, the report added, revenue is estimated to have fallen 0.1 percent annually to $95.8 billion in the five years leading up to 2013. This was mostly attributed to lower profits that were reported in 2008 and 2009. The report noted that because contract workers are employed by the agency they work for - not the firm that needs help from the contingent workforce - lower demand for contract labor led to a drop in overall industry employment, which fell by 10 percent and 12 percent in 2008 and 2009, respectively.
According to Kaiser Health News, the coming changes to the U.S. healthcare system are expected to increase demand for contract workers when the law goes into effect in 2014. As companies turn to the contingent workforce, many are finding it extremely helpful to use a managed labor approach that ensures productivity and can even help lower higher turnover rates.